Analysts: GameStop’s Q3 performance underplayed by general market

Despite a sales boost from games such as Guitar Hero III: Legends of Rock (Xbox 360, PlayStation 3, Wii, PC), Halo 3, Madden NFL 08 (PC, Xbox 360, PS2, PS3, PSP, Wii, DS) and others, it looks like GameStop‘s third quarter performance was downplayed by the general market, a trend that rather “baffled” noted analysts such as Michael Pachter. Read on to get more details.

It looks like GameStop‘s performance in this year’s third quarter was being downplayed by several market analysts. According to Wedbush Morgan’s Michael Pachter, he and a few other analysts were “baffled” by the market’s general reaction towards GameStop’s earnings report, which was less than favorable. He continued,

While some investors are apparently dissatisfied that company guidance is below street expectations for Q4… We believe that management is prudently offering guidance that it is confident it can achieve.

Two other analysts, Mike Hickey from Janco and Arvind Bhatia from Stern Agee, agreed with the opinion that the market downplayed GameStop’s achievement, and that the retailer will not have any difficulty in achieving its Q4 goals.

It should be noted that GameStop enjoyed a sales boost thanks to outstanding games such as Guitar Hero III: Legends of Rock (Xbox 360, PlayStation 3, Wii, PC), Halo 3, and Madden NFL 08 (PC, Xbox 360, PS2, PS3, PSP, Wii, DS), among others.

The sales from the above games boosted GameStop’s profits up by 283% to US$ 52 million.

Via Gamasutra